Four Ways Celebrity Endorsements Boost Technology Profits

Celebrities are a forceful advertisement technique for companies, especially those that can afford such a high-dollar technique. In recent years, celebrity appearances have been increasing in the technology field. For instance, Alicia Keys (Blackberry), Robert Downey Jr. (HTC), Lady Gaga (Polaroid), Jerry Seinfeld (Microsoft), and Kevin Bacon (Logitech) all appear in advertisements for technology companies. Does this make sense? Read on to learn why it may be a great investment to pursue celebrity endorsements.

1. Relatability. While most consumers do not know a celebrity personally, many of us feel that we can relate to celebrities. After all, we frequently see celebrities in various entertainment forums. We begin to feel as if we know the celebrities and their personalities. While we are essentially associating with a character, our perception is what counts the most. This relatability creates an awareness for a product that may have not ever been on the mind of the consumer before. While we are physically closer to local figures such as attorneys, dentists, and others who may promote products, we seem to relate better to celebrities who are essentially out of touch. We literally “see” them more often.

2. Popularity. If a well-known celebrity believes in a particular product and is supporting it, then consumers want to join the trend. In this way, consumers can tout that they are just as trendy as a particular celebrity. For many consumers, they want what celebrities have: presence, money, visibility, and more. Why not the same products then?

3. Credibility. For companies that are struggling, hiring a celebrity can provide credibility to a product that has fallen due to competition. Consumers associate celebrities with the highest quality products. Also, it’s even better if a company’s product could potentially contribute greatly to a celebrity’s success. For instance, since Robert Downey Jr. plays the Iron Man character, it’s not inconceivable that HTC products could play a big part in the role of Iron Man.

4. Success. Most consumers equate celebrity status with success. After all, celebrity status is hard to come by and is only captured by a very small percentage of the population. Therefore, a product that a celebrity promotes leads us to believe it’s a great product.

The technology industry is consistently under extreme pressure to keep up with competitors. Nearly as soon as a new product hits the market, another company is working on something better that won’t take long to follow. Therefore, technology companies have to be creative with their marketing techniques to take away the focus on competitors and to continue to make consumers believe that their product is still the best on the market. Celebrities can help some of these technology companies do just that.